Key metrics

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All results

The results of your hotel will be made automatically by the accountant. You just have to analyse them, you do not have to calculate them yourselves apart from predictions linked to new costs and special decisions you make. After each year they will be ready for you via your secret Team file link.

Your results presented there will be divided into four parts:

• Section operating review: which you will find on the operating review page with all your revenues and costs resulting in your net profit (or loss).
• The section with your personal key metrics. We will look into this on this page. This part shows you all kinds of interesting figures from the market you are in: it holds the major indicators for the performance of the hotel. This is also made automatically.
• Section Market research, if paid for in advance.
• Section Short comment of your coach.

What are the key metrics?

The Bergman family is a very practical family and they are all real entrepreneurs! Christina has also run her hotel by having a good grip on the key metrics: this is an overview of the most important figures of a company, some benchmarks, and some key performance indicators. The development of these figures meant the world to them and it still does! So, Christina would like you to continue working with this key metrics and, as she explains:

Leave all the details, balance sheets etc. to the accountant and other number-fanatics. But please make calculations related to the operating review and your decisions which matter and which show that you are taking care of the profit of my hotel!

After each year you will get, privately and only for your teams, your personalized results on your hotel's Team finances, the tab results. The same information goes to the Board of Directors, so also to Christina. The operating review page will also give you some insights into the revenues structure and the costs side.

Dashboard

The dashboard (first tab in your Team Finances) gives a visual overview of the most important financial figures after each year.

Explanation of the key metrics

This offer a summary of the most important figures:

• Operations

- Total revenues: related to your occupancy rate and prices.
- Total costs: interesting to see developments in the costs.
- Total costs as % of total revenues. In this case, 84.78% which leaves 15.22% margin for the hotel which is quite a lot.

• Ratios

- The occupancy rate of rooms. Very important number indicating if your hotel is attracting (enough) customers. In the hotel branch, depending on the type of hotel and location, above 45% for this kind of hotel is okay. The score is 50%.
- Your average room price is simply the last-minute price plus the rack rate divided by two: ((€ 80 + € 100) ./. 2) = € 90. The second one is the same for the weekdays: so in this case ((€ 100 + € 140) ./. 2) = € 120
- Market share (of total revenues): your position in your city by expressing your revenues (NOT net profit!) as a percentage of the total revenues of all hotel in your city.

• Net profit

- The net profit per year.
- The net profit added up from all of the years, including the history ( €436,307).

Key metrics on your results as you take over.

• Ranking

- Rank on net profit, competition on net profit
You profit compared to the other hotels in your city in any year. In the hotel's results you will find indicated the ranking on the highest net profit in any year, after the dash | the position after adding up the profit after the years passed. The hotel with the highest added up profit after all years passed, is the winner of the competition on profit.

- Rank on creativity, competition on creativity
Your position on creativity compared to the other hotels in your city in any year. This is directly related to the creativity mark you get in any year. In the hotel's results you will find indicated the ranking on the highest creativity mark in any year, after the dash | the position the average over the years passed. The hotel with the highest average mark after all years passed, is the winner of the competition on creativity.

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